SIMEC Atlantis said it has completed the proposed sale of the company’s stake in its Canadian joint venture at the FORCE facility in Nova Scotia, Canada, to its renewable energy development partner DP Energy group.
DP Energy has acquired the remaining 50% interest in Atlantis Operations (Canada) Limited (“AOCL”). Following completion, AOCL will be renamed to become Rio Fundo Operations Canada.
The cash transaction enables the DP Energy group to take a more integrated approach to the AOCL berth alongside its pre-existing wholly owned berth at the FORCE facility. This transaction returns C$400,000 to SIMEC Atlantis and, according to the company, allows the management team to focus resources on other opportunities in the UK, France and Asia and will allow the DP Energy team to focus efforts on the development of the tidal stream industry in Nova Scotia.
Tim Cornelius, Atlantis CEO, said: “I am pleased that we have been able to agree this sale with DP Energy. They have experience and presence in Canada and are well suited to deliver a project in Nova Scotia. This transaction returns value to our shareholders and allows us to focus on the exciting opportunities across the SIMEC group.”
Simon De Pietro, DP Energy director, said: “DP Energy is delighted work with the Nova Scotia Government to promote the development of tidal energy as a major source of renewable electricity production in Canada and we are eager to take on the exciting challenges provided by the tidal resource in the Bay of Fundy. The venture adds further depth to the growing portfolio of renewable energy projects of the DP Energy group of companies worldwide. “